Brexit fears triggers $1.7 trillion shift by UK finance firms

UK banking and finance companies have moved £900 billion ($AUS1.7 trillion) in assets out of the country ahead of Brexit, a report has found.

The study by think tank New Financial says this has cost up to $AUD7 billion and involves 5,000 expected staff moves or local hires, reports the BBC.

Researchers found 275 companies have moved some or all their business from the UK. Dublin was the most popular destination.

The report warns the impact to London was bigger than predicted and would get worse.

"Business will continue to leak from London to the EU, with more activity being booked through local subsidiaries," said William Wright, founder and managing director of New Financial.

He said the big shift offshore would weaken the UK’s current standing as a global leader in financial services.

Government tax revenues would also be damaged.

The report comes as the UK Parliament today prepares for a second vote on the government’s plan to exit from the European Union.

Britain is due to pull out of the EU in less than three weeks, on March 29, but the government has not been able to win parliamentary approval for its agreement with the bloc on withdrawal terms and future relations.

The impasse has raised fears of a chaotic “no-deal” Brexit that could mean major disruption for businesses and people in Britain and the 27 remaining EU countries.